Google’s business model has proven to be successful.
Since company’s inception to include revenue beyond the licensing fees charged to corporation needing search capabilities on company intranets or websites. The development of keyword-targeted advertising expanded its business model to include revenue from the placement of highly targeted text only sponsor ads adjacent to its search results. Google was able to target its ads to specific users based on the user’s browsing history. This allow Google to increase annual revenue from $220,000 in 1999 to more than $86 million in 2001
Google’s strategies have proven to be both successful and unsuccessful.
In forms of dominating the internet through advertising (Extracted from case study)
Google maps, local search, airline travel information, weather, book search, Gmail, blogger and other features increased traffic to Google sites and gave the company more opportunities to serve ads to internet users.
Acquisition of Double Click in 2008 allowed Google to diversify its internet advertising beyond search ads to include banner ads.
However, not all Google’s acquisitions had resulted in meaningful contributions to the company (Extracted from case study)
Even though more than 12 billion videos were watch on Youtube each month, the online video site’s advertising revenues in 2009 were estimated at less than $300 million. Google internally developed social networking site, Orkut, had failed to match the success of competing with social networking sites like Facebook and Myspace.
(http://www.businessinsider.com/googles-strategy-2013-1)
(http://www.forbes.com/sites/anthonykosner/2013/02/03/googles-not-so-evil-plan-help-us-do-more-of-what-we-want-to-do-faster/)
Google underlying strategy is pretty simple "Get people to use the Internet more." The more time people spend on the Internet the more time they'll engage in revenue generating